If you run a private fund, today is deadline for the annual Form PF filing with the Securities and Exchange Commission. Depending on the type of fund, you have different reporting requirements. The SEC gets bogged down with poor definitions trying to distinguish among the types of funds.
In the glossary to Form PF, a Real estate fund is
Any private fund that is not a hedge fund, that does not provide investors with redemption rights in the ordinary course and that invests primarily in real estate and real estate related assets.
That sounds right, but I still need to look at the definition of Hedge fund:
Any private fund (other than a securitized asset fund):
(a) with respect to which one or more investment advisers (or related persons of investment advisers) may be paid a performance fee or allocation calculated by taking into account unrealized gains (other than a fee or allocation the calculation of which may take into account unrealized gains solely for the purpose of reducing such fee or allocation to reflect net unrealized losses);
(b) that may borrow an amount in excess of one-half of its net asset value (including any committed capital) or may have gross notional exposure in excess of twice its net asset value (including any committed capital); or
(c) that may sell securities or other assets short or enter into similar transactions (other than for the purpose of hedging currency exposure or managing duration).
That definition talks about getting performance fees on unrealized gains. That would be unusual for a real estate fund or private equity fund. The borrowing standard in part (b) may cause some people to pause on the definition and get entwined in a rabbithole of definition.
The form also has more detailed requirements for large private equity advisers. For purposes of Form PF, “private equity fund” is
any private fund that is not a hedge fund, liquidity fund, real estate fund, securitized asset fund or venture capital fund and does not provide investors with redemption rights in the ordinary course.
So a real estate fund is not a private equity fund and not subject to the additional reporting requirements.
Being a member of the “all other advisers” category, the filing is due with 120 days after the end of the fiscal year. Assuming calendar year is my fiscal year, the first filing is due by April 30, 2013.
Sources:
- Form PF (.pdf)
- SEC Release IA-3308 (.pdf)
- Form PF and Private Funds
